Aafes and wage garnishment

[Anonymous]

HELP!  I live in North Carolina and received a notice from Transworld on behalf of Aafes telling me they are going to garnish my wages for an outstanding debt.  In the state of NC, wage garnishment is not typically allowed since it is an unsecured debt.  However, they are saying they are backed by the US Gov.  I read the credit app I used to apply for the Military Star Card and it says the card is issued by a private banking entity.  I believe back when I originally applied they had some cards that were issued by Chase and another creditor.  Can anyone give me pointers on how to prevent the wage garnishment.  I have tried to work out a payment arrangement but they are asking for 25% down and monthly payments of $300.  Any advice?

[gdale6]

You would actually need to get this before the judge who granted the judgment and prove that this is a private backed financial product and is not guaranteed by any governmental entity.

[Khooks2]

Well they can’t garnish wages without a court order. Did you receive a summons to appear in court?

[amck12]

Yes they can garnish your wages without a civil court. The military star card is a special case, and I would quit using it ASAP, I find it very scammy. Get a rewards card with Navy Fed or Pen Fed, way better deal, and you don't have the government messing around in your wallet. Also, like with the Government Travel Card, abuse of these cards can affect your career. Send them a certified letter asking them for proof of the debt, and contact aafes to see if they got third party collections involved to make sure they're legit.

https://www.armytimes.com/pay-benefits/2017/09/23/military-star-card-5-things-to-know/

https://www.military.com/paycheck-chronicles/2016/11/22/military-star-card-questions-answers

[Anonymous]

Thank you. That's pretty much what I was told but this account is from 2012. NC has some very restrictive garnishment laws but should they send it to USTreasury, they will honor it.

[Anonymous]

Thanks for your response, but there was no judge or judgement. They are using Administrative law to do it.